01.21.10
Posted in Business and Economy, Seychelles legislation at 4:27 pm by Robert Klien
The newly-formed Fair Trading Commission will look out for practices that hinder competition as well as advise on or take action against them. This was announced by the Commission’s chief executive Daniel Gappy on January 20.
According to Gappy, one of the practices is price fixing for which the Fair Trading Commission can fine or jail guilty traders.
On January 15, the commission’s board members met for the 1st time. At the meeting, the commission’s chairman, Dr Shelton Jolicoeur, said that liberalisation of the market economy can “not only bring fierce and vigorous competition but also some amount of anti-competitive practices as firms jostle for economic advantage”.
Gappy said: “When we receive complaints we will investigate them, and the commission will give a ruling based on its findings”. The commission can impose a fine, a jail sentence or both. The traders can appeal agaist its decision to the tribunal and later at the Supreme Court.
The newly-created body will be fully operational in April2010 as the Fair Competition Act will come into force in April.
The Fair Competition Act is aimed to encourage competition in trade and business as well as in the supply of a wide variety of quality goods and services at competitive prices.
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12.13.09
Posted in Seychelles government, Seychelles legislation at 6:42 pm by Robert Klien
The Seychelles’ Ministry of Finance has announced that the rate of trades tax on commercial and specialised vehicles will remain unchanged in 2010. It will be 25% and 0% respectively, but the tax on buses will be 5%.
When announcing the 2010 Budget Address in the beginning of December, Minister for Finance Danny Faure said that, as from January 1, 2010, rates of trades tax on passenger motor vehicles will be reduced across the board from between 75% and 225% to 25%.
Also, an excise tax will be introduced to offset some of these trades tax reductions.
It should be noted that the decision on taxes is in line with the government’s intention to bring Seychelles’ tax regulations up to international standards.
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12.04.09
Posted in Seychelles government, Seychelles legislation at 12:24 pm by Robert Klien
Legal action is among new measures that can be taken by the Employment Department in order to ensure employers comply with the minimum wage regulation set up in January 2008.
The new measures are necessary now as a rise of R1 an hour in the minimum wage has been announced. The new rate will be R16.50 an hour as from July 2010 – this increase was announced by Minister for Finance Danny Faure during his 2010 Budget Address.
Director General for employment Jules Baker said that despite the regulation, there are still complaints being received from workers who are not being paid properly. If found guilty, employers will be fined from R1,000 up to R10,000 depending on the offence. Those who go on refusing to comply with the regulation will pay an extra fine of R200 a day.
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07.29.09
Posted in Business and Economy, International Organisations, International relations, Seychelles legislation at 10:27 am by Robert Klien
The Executive Board of the International Monetary Fund (IMF) has recently completed the second review of Seychelles’ economic programme under the two-year stand-by arrangement. By the results of the review, IMF decided to approve a disbursement to Seychelles in the amount of approximately US$1.4 million.
The Executive Board of IMF also completed the latest review of quarterly financing assurances and approved the modification of quarterly quantitative performance criteria, and agreed to establish a schedule of semi-annual program reviews.
Deputy managing director and chairman of the Executive Board, Mr. Takatoshi Kato, speaking about Seychelles, noted rapid progress on macroeconomic stabilization of the jurisdiction, and the significant fiscal consolidation backed by the market-based monetary policy. By his words, the country should continue its efforts to expand monetary policy instruments, and modernize “the the legal and institutional framework for the financial sector.”
He pointed out that the authorities of Seychelles “have strengthened tax administration and launched a fundamental tax policy reform, which are key to improving the investment climate, reducing economic distortions, and securing fiscal sustainability.”
Mr. Kato also said that good progress is being made with public external debt restructuring, and the authorities should reinforce their debt management capacity, supported by IMF technical assistance.
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04.11.09
Posted in Business and Economy, Seychelles government, Seychelles legislation at 3:44 pm by Robert Klien
President James Michel has recently repeated his call for Seychellois to be innovative and develop as entrepreneurs because this is a good way to make for a living and to create employment. President Michel expressed his confidence that in future this will be an important sector in the economy of Seychelles.
This was said in the speech the President held in his monthly television programme entitled En Moman Avek Prezidan. The theme of this progremme’s interview was employment. He noted that creating jobs is not easy, and employment comes through investment or through the support to businesses in the private sector.
To urge entrepreneurial development, the President announced a doubling of funds of the Small Credit Agency – from R10 million to R20 million and an increase in the maximum amount that can be borrowed by from R200 000 to R300 000. The economic programme is aimed to encourage people to start their own businesses.
The President suggests that small businesses, especially those Seychellois-owned ones, are of a special importance.
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01.11.09
Posted in Seychelles government, Seychelles legislation at 6:17 am by Robert Klien
On January 8, 2009, newly appointed Court of Appeal Judge Anthony Fernando, Attorney General (AG) Ronny Govinden and Puisne Judge Mohan Burhan along with newly reappointed Electoral Commissioner Hendrick Gappy were sworn in before Seychellois President James Michel. The event took place at State House.
The ceremony was attended by Vice-President Joseph Belmont, Designated Minister and Minister for Finance Danny Faure, Speaker of the National Assembly Dr Patrick Herminie, Master and Registrar of the Supreme Court Melchior Vidot, President of the Court of Appeal Francis MacGregor, Chief Justice Ranjan Perera, the chairman of the Constitutional Appointments Authority Jeremie Bonnelame, the secretary to the Cabinet Mohammed Afif, as well as by other judges and members of the families of the appointees.
Justice MacGregor said that the new judges will make the process of cases faster.
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08.01.08
Posted in Financial Services, Mutual Funds, Offshore Services, Seychelles legislation at 8:59 pm by Robert Klien
The Central Bank of Seychelles has recently announced that Seychelles’ Mutual Fund Act has been updated. To build on the success of the financial services industry, Mutual Fund Act has been redrafted in order to plug gaps in the previous mutual funds legislation as well as to allow local financial service providers to tap into the multi-trillion dollar offshore mutual funds industry.
The redraft has been undertaken with a view to enable companies working in the financial services sector to offer services to mutual funds investors, which combine the assets of many investors in order to create larger funds for investment in stock exchanges and money markets as well as other investment opportunities.
The original legislation came into force in 1997. This was the beginning of mutual funds development.
The global mutual funds industry was estimated to be worth USD 26.2 trillion by the end of 2007. The industry has surpassed any other offshore business structure. It is growing at an average of 1 trillion USD per year.
It is also worth noting that the newly drafted legislation is aimed at bolstering banking and legal services for mutual fund operations.
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01.16.08
Posted in SIBA, Seychelles IBC, Seychelles legislation, Seychelles offshore jurisdiction at 11:18 am by Robert Klien
On December 17, 2007, the Seychelles International Business Authority (SIBA) published a document entitled International Business Companies (Amendment of Schedule) Regulations, 2007. The above-mentioned document was signed by the Minister of Finance.
What the document does is simplifying the fees related to Seychelles offshore company registration (Schedule 1 of INTERNATIONAL BUSINESS COMPANIES ACT, 1994).
The amendments are as follows:
previously:
(a) $100 upon the registration by the Registrar of a company incorporated under this Act the authorised capital of which is $5,000 or less;
now:
(a) $100 upon the registration by the Registrar of a company incorporated under this Act;
previously:
(e) $500 upon the registration by the Registrar of articles of merger or consolidation, but $700 in the case of articles of merger or consolidation that also constitute the Memorandum of a company the authorised capital of which, exceeds $50,000 or that amend the Memorandum of a surviving company to increase the authorised capital from $50,000 or less to more than $50,000;
now:
(e) $500 upon the registration by the Registrar of articles of merger or consolidation;
previously:
(f) $500 upon the registration by the Registrar of articles of arrangement, but $700 in the case of articles of arrangement that also constitute the Memorandum of a company the authorised capital of which exceeds $50,000 or that amend the Memorandum of a company to increase the authorised capital from $50,000 or less to more than $50,000;
now:
(f) $500 upon the registration by the Registrar of articles of arrangement;
previously:
(g) (i) $100 upon the submission to the Registrar of articles of continuation for a company the authorised capital of which does not exceed $5,000;
now:
(g) $100 upon the submission to the Registrar of articles of continuation.
As regards annual fees, there is the following amendment:
Instead of fees divided according to the authorised capital:
(2) A company the name of which is on the Register on 31st December in any year shall, before the date of the relevant anniversary of its incorporation under the Act pay to the Registrar an annual licence fee as follows -
(a) $100 if its authorised capital does not exceed $5,000;
(b) $300 if its authorised capital does not exceed $50,000 and its shares have a par value;
(c) $1,000 if its authorised capital exceeds $50,000; and
(d) $350 if its authorised capital does not exceed $50,000 and some or all of its shares have no par value
now the fee $100 is to be paid:
(2) A company the name of which is on the Register on 31st December in any year shall, before the date of the relevant anniversary of its incorporation under the Act pay to the Registrar an annual licence fee of $100.â€
he above-mentioned document named “International Business Companies (Amendment of Schedule) Regulations, 2007†was signed by the Minister of Finance Danny Faure on October 12, 2007.
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12.05.07
Posted in Seychelles CSL, Seychelles IBC, Seychelles legislation, Seychelles offshore jurisdiction at 1:27 pm by Robert Klien
Recently the Seychelles International Business Authority (SIBA) has informed about proposed amendments in Seychelles offshore legislation. It is expected that Seychelles IBC Act and CSL Act will be amended, but Seychelles Mutual Fund Act 1997 will be replaced by new Mutual Fund Act.
The SIBA has stated that Seychelles is experiencing a surge in its international business level, and, according to it, in 2006 Seychelles recorded another important increase in its International Business Companies (IBCs) registration. The jurisdiction registered a record number of new companies being formed in 2006 – 8237 companies. This number represents a 16% increase over the year 2005. The total amount of companies on SIBA register as at December 2006 was 33161 companies. The SIBA noted that the above-mentioned results make Seychelles, perhaps one of the most favoured offshore jurisdictions in the world.
In order to maintain the continuous growth and to adopt the country in the competitive environment, Seychelles has proposed amendments to the existing legislation. According to the SIBA, the amendments will align the jurisdiction with such well-regulated jurisdictions as the BVI, the Cayman Islands and Jersey.
The proposed amendments published by the Seychelles International Business Authority are proposed amendments to the IBC Act, proposed amendments to the Seychelles Special Licences Companies Act, and proposed new Mutual Fund Act.
The proposed amendments rare expected to improve the existing legislation as to allow Seychelles to remain at the forefront of the developing offshore industry. And, as far as Seychelles’ offshore industry growth is going on, we should expect to hear a lot more about Seychelles as an offshore centre in the near future.
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09.14.07
Posted in Seychelles government, Seychelles legislation at 3:12 pm by Robert Klien
President James Michel recently said that Seychelles law is being amended in order to allow to seize the assets of suspected drug traffickers.
Having marked one year in office, the President said that Seychelles has experienced significant growth during the year, however, there has also been an increase in substance abuse among the county’s population.
So, President Michel emphasized the necessity “to tackle the problem caused by those who are importing drugsâ€. According to him, certain laws are being amended in order to impound the assets of people dealing with drug trafficking.
The President said that apart from this problem, things have gone well for the country with the level of growth of 5.3%, which is an increase of 1.2% from the previous year. He also shared the expectations of 7.5% growth this year.
It is important that the President of Seychelles has raised the question of dealing with drug traffickers as drug trafficking goes hand-in-hand with money laundering, which might harm the reputation of Seychelles as a respectable offshore centre.
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